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PTR vs. E: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Oil and Gas - Integrated - International sector have probably already heard of PetroChina and Eni SpA (E - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

PetroChina has a Zacks Rank of #1 (Strong Buy), while Eni SpA has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PTR is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

PTR currently has a forward P/E ratio of 6.90, while E has a forward P/E of 15.41. We also note that PTR has a PEG ratio of 0.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. E currently has a PEG ratio of 0.68.

Another notable valuation metric for PTR is its P/B ratio of 0.40. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, E has a P/B of 1.05.

Based on these metrics and many more, PTR holds a Value grade of A, while E has a Value grade of C.

PTR has seen stronger estimate revision activity and sports more attractive valuation metrics than E, so it seems like value investors will conclude that PTR is the superior option right now.


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